Transcript Review for Exam 1 - J. Wooten

Review for Exam 1
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You have 1 minute per question
Please Don’t Get Confused
Twelve friends got together to celebrate
a birthday. If the birthday cake is cut into
12 pieces the same size and 1 slice give
to each person, the cake is distributed:
A. Efficient, but not equitable
B. Equitable, but not efficient
C. Efficient and equitable
D. Equitable
Twelve friends got together to celebrate
a birthday. If the birthday cake is cut into
12 pieces the same size and 1 slice give
to each person, the cake is distributed:
A.
B.
C.
D. Equitable
How can this country ever produce at
point E?
A. Eliminates unemployment
B. Raises Taxes
C. Permits more immigration
D. Increases the cost of production by
decreasing the use of technology
How can this country ever produce at
point E?
A.
B.
C. Permits more immigration
D.
If the production possibility frontier is a
straight line, which of the following is
true?
A. Opportunity Costs are constant
B. The firm faces increasing costs
C. The firm faces decreasing costs
D. There is no trade-off between the two
goods represented
If the production possibility frontier is a
straight line, which of the following is
true?
A. Opportunity Costs are constant
B.
C.
D.
In one day, Kessy can bake 10 cookies or
mix 15 glasses of lemonade. His friend,
Ava, can make 10 cookies or 10 glasses
of lemonade. His other fiend, Ian, can
make 10 cookies or 20 glasses of
lemonade.
Who has the lowest opportunity cost in
cookie production?
A. Kessy
A. Ian
B. Ava
B. Kessy and Ava
In one day, Kessy can bake 10 cookies or
mix 15 glasses of lemonade. His friend,
Ava, can make 10 cookies or 10 glasses
of lemonade. His other fiend, Ian, can
make 10 cookies or 20 glasses of
lemonade.
Who has the lowest opportunity cost in
cookie production?
A.
A.
B. Ava
B.
If the demand for tires goes down when
the price of gas goes up, then tires and
gas are:
A. Substitutes
B. Complements
C. Both expensive
D. Both inexpensive
If the demand for tires goes down when
the price of gas goes up, then tires and
gas are:
A.
B. Complements
C.
D.
In the market for tacos, you observe that
the equilibrium price and quantity have
increased. This can be caused only by:
A. An increase in the price of beef
B. An increase in the wages of taco shop
workers
C. Fewer tacos shop
D. Increase in the income of people who eat
tacos
In the market for tacos, you observe that
the equilibrium price and quantity have
increased. This can be caused only by:
A.
B.
C.
D. Increase in the income of people who eat
tacos
The market for corn is in equilibrium.
Which of the following is most likely to
increase the equilibrium PRICE of corn?
A. A bountiful harvest
B. Increasing production of corn-based
ethanol
C. Decreasing household incomes and corn is
a normal good
D. A subsidy given by the government to
growers of corn
The market for corn is in equilibrium.
Which of the following is most likely to
increase the equilibrium PRICE of corn?
A.
B. Increasing production of corn-based
ethanol
C.
D.
Which of the following would result in a
movement along the demand curve?
A. A change in preferences
B. An increase in the number of buyers
C. An increase in the number of suppliers
D. A decrease in income
Which of the following would result in a
movement along the demand curve?
A.
B.
C. An increase in the number of suppliers
D.
Which situation would most likely cause
a decrease in consumer surplus in the
toy market?
A. The cost of shipping increases because of
higher oil prices
B. Consumer income increases
C. There is an unexpected baby boom
D. A new assembly line design increases
worker productivity
Which situation would most likely cause
a decrease in consumer surplus in the
toy market?
A. The cost of shipping increases because of
higher oil prices
B.
C.
D.
Which of the following is true if there is
a decrease in demand for cupcakes?
A. Increase in producer surplus
B. Increase in consumer surplus
C. Increase in total surplus
D. Decrease in producer surplus
Which of the following is true if there is
a decrease in demand for cupcakes?
A.
B.
C.
D. Decrease in producer surplus
Egg producers know that the elasticity of
demand for eggs is 0.1. If they want to
increase sales by 5%, they will have to
lower price by:
A. 0.1%
B. 1%
C. 5%
D. 50%
Egg producers know that the elasticity of
demand for eggs is 0.1. If they want to
increase sales by 5%, they will have to
lower price by:
A.
B.
C.
D. 50%
Each month, Jessica buys exactly 15 Big
Macs regardless of the price. Jessica’s
price elasticity of demand is:
A. 0
B. 1
C. Greater than 1
D. Less than 1, but great than 0
Each month, Jessica buys exactly 15 Big
Macs regardless of the price. Jessica’s
price elasticity of demand is:
A. 0
B.
C.
D.